Photronics Inc (PLAB)

Return on assets (ROA)

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020
Net income (ttm)	US$ in thousands	130,688	141,430	134,001	137,679	125,485	117,934	122,205	109,708	118,786	101,537	87,383	70,477	55,449	42,098	35,798	31,556	33,820	37,060	32,631	34,826
Total assets	US$ in thousands	1,712,060	1,645,100	1,603,450	1,582,840	1,526,220	1,503,340	1,451,020	1,441,680	1,315,830	1,349,600	1,331,890	1,335,250	1,294,200	1,281,760	1,265,990	1,232,060	1,188,180	1,195,840	1,133,890	1,125,460
ROA		7.63%	8.60%	8.36%	8.70%	8.22%	7.84%	8.42%	7.61%	9.03%	7.52%	6.56%	5.28%	4.28%	3.28%	2.83%	2.56%	2.85%	3.10%	2.88%	3.09%

October 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $130,688K ÷ $1,712,060K
= 7.63%

Photronics Inc's return on assets (ROA) has fluctuated over the past few quarters, ranging from 2.56% to 9.03%. ROA measures the company's ability to generate profit relative to its total assets, indicating how efficiently management is using its assets to generate earnings.

The trend shows that ROA improved from 2.56% in Jan 31, 2021, to a peak of 9.03% in Oct 31, 2022, before declining to 3.09% by May 3, 2020. This suggests that in the recent years, the company's management has improved its efficiency in generating profits from its assets, reaching its peak performance in Oct 31, 2022. However, there has been a subsequent decline in ROA, indicating a potential decrease in efficiency in the most recent quarters.

Overall, the company's ROA performance indicates that management has been effective in optimizing the utilization of its assets to generate profits, with periods of both improvement and decline. It would be important to monitor this ratio closely to assess the company's ongoing financial health and operational efficiency.